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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

AIBU to wonder why the UK doesn't have a culture of saving for kids' University?

323 replies

windygallows · 05/07/2016 21:15

I'm originally from North America where 'saving for College/University' is a big part of the culture, in fact it's quite normal for parents to take a college fund out just after baby is born. And understandably - University is really expensive in the US eg (tuition + living expenses of $30,000 pa).

I've had both my children in the UK (have lived here for 20 years) and do my best to put a bit of money into a college fund every month, even if its a stretch. When I mentioned this to a few friends they looked at me with amusement and asked 'why?' I've casually asked around if others are saving for college - some have put money aside but haven't specifically said it's for higher education. I haven't pried, just asked a few people so don't have a full picture.

However I'm finding it surprising that this isn't more of a concern for parents. In the UK University isn't 'free' anymore (eg. through grants), tuition is very pricey now, grants are rarely available, and student loans are shrinking. But it just seems like this hasn't been absorbed by many parents. Or maybe it has and I just don't know!

Before flaming me - I'm aware not everyone can afford to put money/savings away and I'm also aware that not everyone can or wants to go to University, so no need to debate that. I'm just questioning the seeming obliviousness to the dramatic change in the cost of University here.

AIBU?

OP posts:
BengalCatMum · 06/07/2016 18:44

This reply has been deleted

Message withdrawn at poster's request.

PetyrBaelish · 06/07/2016 18:48

It would have made a much bigger difference to my life if my parents had given me money for a deposit rather than stopping my (relatively small) student loan payments by paying it off, so, I will do that if I am in a position to (my son is still small).

SkyLucy · 06/07/2016 19:07

Just skimmed through this interesting thread. I noted OP's comment on Oxford costing £9k a year - all unis charge this to UK/EU students (for now, anyway!) My knowledge might be outdated, but the extra consideration for Oxbridge is you're not allowed to work in term-time. I went to Cambridge when fees were £3k a year - I didn't have any mum and dad funds but I took a student loan (which I'm still paying off), had a bursary from my college because of my parents' income, and worked in the holidays.

I now work for a university and it's very, very rare that any UK kids have money from their parents. Completely different story for the international kids, but then they're charged £16k per year...

user1467101855 · 06/07/2016 19:14

I'm originally from North America where 'saving for College/University' is a big part of the culture, in fact it's quite normal for parents to take a college fund out just after baby is born

The vast majority of American parents can't afford to save up enough to pay for children to do several years in expensive colleges either, any more than most European parents can.

springwaters · 06/07/2016 20:12

I dont agree about Uk students not getting funding from parents. Both of mine are students and all of their housemates receive some kind of funding from parents- it is an expectation of the system.

The amount that they can borrow is based on parental income. For higher (or some may say medium) income parents the living amount is very low so parents have to contribute or they have to work.

It is the best part of £40k a year to have 2 students in a Uk university (fees, living expenses, one does a course with overseas study, one is student in an area with very high living costs) . £9k fees each. £10k+ in accommodation costs between them (plus insurance, water bills, internet etc ).

Sugarlightly · 06/07/2016 20:53

Because university is seen as optional. If a person is 18 and wishes to go to university, there are loans available

JemimaMuddledUp · 06/07/2016 21:10

When I was in university, 20+ years ago, the majority of my friends had at least some help from their parents. My parents weren't in a position to help me, so I had to work and it was a struggle. I'm hoping to make things a little easier for my DC, they'll still take out loans I'm sure but they will have a little bit of back up too.

NinjaLeprechaun · 06/07/2016 21:25

"Medicine should be an undergrad degree as here. It works pretty well."
I'd like the person making life-or-death decisions about my health to have as much education as possible beforehand, to be honest.

Although, and correct me if I'm wrong, a junior doctor in the UK can't make certain diagnoses or decisions, those have to be done by a consultant? There's no such division in the US, a fully qualified doctor is a fully qualified doctor no matter how much experience they have (or don't have). Which would make a difference, I'm sure.

Mrscog · 06/07/2016 21:40

It doesn't have to be a Uni savings fund though does it - OUr DC are still young (4&1) and we're not saving for them. However we plough every spare penny into our mortgage, which should mean that by the time they're at uni, we shouldn't have a mortgage anymore (or just a small one) and then they can just have that money instead? So just because someone isn't putting the money away specifically, they may still be performing some level of financial planning.

elh1605 · 06/07/2016 21:42

My dad has 3 bank accounts (she's 2) she has an 'every day' account that birthday/Christmas money goes into and it pays for things like music group/sports group and clothes and toys etc throughout the year. An ISA that her grandparents put into every month and we add too at the end of the year that cant be touched till shes 18 and an ISA that is a yearly saver thing (technical term!!) That her child benefit goes into every month and this gets transfered to her other ISA at the end of the year. My nan and my parents did this for me growing up so I always said I'd do it for my child. We're not rich by any stretch and just get by but are determined to give her a good head start for whatever she feels she wants it for at 18.

MrsDeVere · 06/07/2016 21:48

This reply has been deleted

Message withdrawn at poster's request.

BackforGood · 06/07/2016 21:48

Well that's all relative elh. You do know that a considerable majority of parents use the child benefit to pay for everyday expenses in life?
Being able to just save it every month is a luxury.
It also gets more complicated once dc2 or even 3 or 4 come along too.

christmaswreaths · 06/07/2016 22:03

I have done this, and know lots of other people who have funds for their children's university too.

With four children and loads of other expenses, I am not sure I will reach the required sums by the time they reach 18, but even if I have half it will be better than nothing!!

One other thing to bear in mind is that some people don't like discussing finances and I wouldn't be surprised if they didn't want to disclose this type of information.

Ghodavies · 06/07/2016 22:11

It would be fantastic in an ideal world - but when I lived at home (and the same for my 3 kids) it is more important to feed and clothe them now
It's just not possible for everyone

MrsSc00bs · 06/07/2016 22:16

I paid my own way through university, and so did many of my friends. We rocked up, got ourselves part time jobs, took the loans available and just did it. I wouldn't have dreamed of my parents paying for my degree education - that was my choice not theirs.

If my son wants to go to university we will support him as much as we are able (as long as he does a useful degree that will get him a job!), but everything is bundled up in one big pot that needs to pay for our old age as well.

Going to college/uni isnt the be all and end all these days - a university degree does not guarantee a job let alone a high paid job, so I don't think it registers so much in this country.

NinjaLeprechaun · 06/07/2016 22:18

"Or is it something that people with money do? Not so much cultural as financial."
Aren't financial decisions influenced by culture though?
I can tell you that a lot of people in the US consider "saving for college" to be an integral part of the cost of having a child. As in, they make decisions about when/whether they can have child or children based on their ability to put money aside for them.

This wouldn't be true for everybody, of course, but probably is for anybody above the poverty line earning a decent amount of money. It's certainly put forward by financial advisers as being as important as putting money into a pension fund. (Which we also know that not everybody can afford to do.)

There are means tested grants to go to university, although they wouldn't come close to paying for the whole thing, but they're based off the parents' income if the student has lived at home in the year previous to applying. So a lot of students leave high school unable to qualify for them, whether they have savings or not.

NowWhat1983 · 06/07/2016 22:19

Although, and correct me if I'm wrong, a junior doctor in the UK can't make certain diagnoses or decisions, those have to be done by a consultant? There's no such division in the US, a fully qualified doctor is a fully qualified doctor no matter how much experience they have (or don't have). Which would make a difference, I'm sure.

And if true, you think that is bad?

A fully qualified Dr in the USA may have done a woolly crappy degree, only done 4 years in medical school and then let loose.

They've done less time in a medical training programme than ours do.

uhoh1973 · 06/07/2016 22:23

I think its true that paying serious money (£9k) per year for university fees is a new thing so people in the UK haven't really geared up for it yet (you certainly wouldn't have had time to save for the kids who have already had to pay)...
We are thinking about it and our children are young. Friends of ours who are less well paid are also already thinking about it. Friends of theirs have already dismissed it as not a priority for them. So I guess it depends on what your priorities are and what your thoughts on debt is. As has been said for some it may be smarter to take the cheap loan and use the cash for something else.

beetroot2 · 06/07/2016 22:24

Because I can't. Im a single parent on minimum wage.

Alasalas2 · 06/07/2016 22:25

This reply has been deleted

Message withdrawn at poster's request.

magratvonlipwig · 06/07/2016 22:31

We saved for both our kids uni tution. Then the loans system came in and it wasnt required. We have helped them with living costs, they willpay back the loan if their earnings ever get big enough... .
After lots of research we decided it wasnt financially sensible for us to pay up front

beetroot2 · 06/07/2016 22:32

£1 a week for 52 weeks x 18 equates to £936, so not sure what you mean Alas?

chocolatespiders · 06/07/2016 22:33

Money saving expert has said that any parents savings for children would be better used for house deposit rather then uni
He encourages full loans to be taken instead.

User100 · 06/07/2016 22:33

No one has to pay tuition fees up front - they are a loan that is taken as a percentage of pay after graduation (like a tax) so there's no need to save for them. Re living costs everyone gets some loans (on a similar basis as above), depending onot family income you may get more but between even the minimum loans and a bit of part time/holiday work and a little parental support (less than you need to seriously save for, and if parents really can't afford it the student will get more in loans/grants) you can at least live. I can't see any need to save for it like you genuinely have to in the USA because there is still far more support available.

Woolyheads · 06/07/2016 22:34

I don't save for DCs Uni costs because I just assume my child will do what I did; save from age 11 onwards - newspaper round, evenings and weekends in a petrol station then holiday work once old enough. Then cleaning job before lectures, canteen work midday and cold calling every evening while at Uni. The university Library was open late and there was a book drop off box for very early morning starts (I started at 5 am and finished selling kitchens at 10 pm). Got a 1st then got a PhD. No help from parents or family. So no college fund for DC.